SINGAPORE (Aug 23): Parkson Retail Asia posts a net loss of $59.5 million for the full year ended June, sinking into the red from earnings of $30.2 million a year ago.
This was mainly due to significantly lower other income and higher expenses.
Other income fell 85.2% to $8.4 million, from $57.1 million a year ago.
This was mainly due to the absence of a $46.8 million gain in FY2016 from the partial disposal of equity interest in its former subsidiary, Parkson Hanoi Co.
Meanwhile, total expenses grew 14.3% to $469.5 million. The increase was led by higher cost of direct sales, other expenses, and employee related expenses, which rose by $20.4 million, $20.0 million, and $7.9 million, respectively.
Revenue grew 6.3% to $412.7 million in FY2017, from $388.4 million a year ago.
Direct sales was the main contributor to the increase, as a result of Parkson’s foray into various apparel brands since last year.
As at end June, cash and cash equivalents stood at $63.3 million.
Looking ahead, the group says it expects to continue to face challenging operating environments in FY2018 due to fragile consumer sentiment as well as increased political and societal uncertainties.
To mitigate these challenges, the group says it will exercise vigilance in pursuing its strategy to transform Parkson into a lifestyle concept retail business.
Parkson has not declared any dividend for the current FY2017. In FY2016, it had paid out a final dividend of 0.5 cent per share.
Shares in Parkson Retail Asia closed 0.7 cent lower on Wednesday, falling 8.8% to 7.3 cents.
